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CMA Final · Entrepreneurship and Startup · The Entrepreneurial Ecosystem

Which feature most clearly distinguishes an incubator from an accelerator in the entrepreneurial ecosystem?

An incubator typically nurtures very early ideas over a flexible, longer period, while an accelerator runs a short, fixed-duration cohort programme to speed up growth of startups that already have some traction. The option that reverses these features is incorrect.

  1. AAn accelerator only supports companies that have already listed on a stock exchange
  2. BAn incubator offers a fixed-length cohort programme that ends with a demo day, while an accelerator has no time limit
  3. CAn incubator usually nurtures very early ideas over a flexible, longer period, whereas an accelerator runs a short, time-bound cohort programme to speed up growth of existing startupsCorrect
  4. DAn incubator always takes majority ownership while an accelerator takes none

Explanation

Incubators typically support idea or early-stage ventures with space, mentoring and resources over a flexible, longer period. Accelerators run short fixed-duration cohort programmes, often ending in a demo day, to fast-track startups that already have a product. The option reversing these features is wrong.

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